Outset Medical (OM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Josh Jennings from TD Cowen maintained a Buy rating on the stock and has a $3.00 price target.
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Josh Jennings has given his Buy rating due to a combination of factors that highlight a positive outlook for Outset Medical. The company reported a sequential increase in revenue in the fourth quarter, with $29.5 million, which exceeded the earlier guidance and showed strong recurring sales. This growth reflects the company’s strategic changes in its commercial approach, which are bearing fruit.
Moreover, the revenue guidance for 2025 is set between $115 million and $125 million, which is in line with expectations and suggests a conservative approach that could lead to upside potential. Outset Medical is also on track for margin improvements, with adjusted gross margins showing a promising upward trend. The company’s solid financial position, exemplified by a cash reserve of $210 million, coupled with a growing installed base of nearly 6,000 consoles, further supports the Buy rating as it indicates strength in both product adoption and financial health.
According to TipRanks, Jennings is a 5-star analyst with an average return of 8.3% and a 54.33% success rate. Jennings covers the Healthcare sector, focusing on stocks such as Edwards Lifesciences, Stereotaxis, and Vericel.
In another report released yesterday, BTIG also reiterated a Buy rating on the stock with a $3.00 price target.